India inaugurates first private military aircraft facility with assistance from Spain

Indian Prime Minister Narendra Modi and Spanish Prime Minister Pedro Sanchez inaugurated India’s first privately operated military aircraft facility, advancing New Delhi’s drive for increased local production in the defence and aerospace sectors.

Modi and Sanchez rode through the streets of Vadodara in Gujarat, Modi’s home state, in a flower-laden open-top vehicle as hundreds of cheering locals waved banners in welcome. The Spanish leader’s arrival marks the first visit by a Spanish prime minister to India in 18 years, with a ceremony underscoring Madrid’s focus on strengthening investment in the world’s fifth-largest economy.

The facility, a joint venture between Tata Advanced Systems and Airbus, is part of a $2.5 billion deal made with India’s Ministry of Defence in 2021 for 56 C-295 aircraft. Sixteen of the cargo and troop transporters will be assembled in Seville, Spain, with the remaining 40 to be manufactured in Vadodara. Production in India is expected to be underway by 2026, with the aircraft capable of carrying up to 71 soldiers or 50 paratroopers and designed for versatile roles including medical evacuation, disaster relief, and maritime patrol.

At the inauguration, Modi expressed that the project would not only boost India-Spain relations but also the 'Make in India' mission, establishing India as a "trusted partner in global aerospace manufacturing." Sanchez echoed Modi’s sentiments, praising Airbus's collaboration as a milestone in India’s defence and space industries and highlighting Spain's role as a "reliable and strategic partner." 

Tata Group chairman Natarajan Chandrasekaran hailed the launch as a landmark for India’s defence sector, attributing the concept to the late Ratan Tata, who envisioned it over a decade ago.

Spain, currently the 16th largest foreign investor in India, sees further collaboration in sectors including construction, pharmaceuticals, energy, and railways. Trade between the two countries was valued at $9.9 billion in 2023, with India exporting $7.17 billion and importing $2.74 billion.

Sanchez will continue his visit on Tuesday in Mumbai, where he plans to meet with trade and industry leaders and explore potential collaborations in Bollywood.